Lessons and Policy Implications from the Global Financial Crisis (original) (raw)

The Quest for the Stability of the Global Financial System

Procedia Economics and Finance, 2015

The global financial crisis has taught the economies all over the world serious lessons. The aim is to assure a similarly tough crisis would not occur again. The paper focuses on the question whether stricter financial regulations are needed and how the global financial system can be reformed to become more resistant to shocks. Strengthening the financial regulation and the issue of financial stability have become a key public policy issue for economies with a significant role in reaching agreements between countries toward this direction. It is the G-20 economies and the IMF that are committed to maintaining financial stability and the transparency of the financial sector, which is likely to remain the source of economic crises. Nevertheless the trade-off between safety and economic growth has to be taken into account. This paper examines what has been achieved in the field of implementing regulatory reform steps and whether they provide protection to consumers and taxpayers as well as the preparedness of financial institutions when it comes to facing potential shocks.

Reform of the Global Financial Architecture

SSRN Electronic Journal, 2010

This paper examines the implications of the global financial crisis of 2007-10 for reform of the global financial architecture, in particular the International Monetary Fund and the Financial Stability Board and their interaction. These two institutions are not fully comparable, but they must work more closely in the future to help prevent global financial crises. To this end, the paper identifies institutional and substantive reforms separately and in their joint work that would be desirable and appropriate.

A Decade After the Global Financial Crisis: Lessons and Policy for International Stability

International Journal of Financial Research, 2020

The Global Financial Crisis of 2007-09 has been the most severe global shock after the Great Depression of the 1930s. A crisis of this order has changed the outlook on international socioeconomic integration and concerns on financial security and global polity. As we are a decade after the crisis, it is instinctively imperative to relook and analyse the lessons learnt and the policy responses that helped ease the crisis. This paper is an attempt in that direction. Research over the years suggests that global financial system has evolved into a more innocuous network at limited unintended costs. Globally policy regulations have tightened to lessen the impact of future crises and today most countries have some form of macro-prudential surveillance.

International financial reform: regulatory and other issues

Various mechanisms of prudential oversight over the financial system can help to make an economy more resistant to contagious financial shocks. Better and more realistic supervision of institutions is needed both in capital-importing and capital-exporting countries. This paper examines international rules for capital ratios, how far implicit and explicit guarantees undermine financial agents’ and institutions’ sense of responsibility for their own decisions, what can be done to strengthen the operation of market discipline for banks, and the need to develop deeper financial markets so that the concentration of the risks in the banking system can be diluted. Given differences in country circumstances, the focus of international cooperation should be to ensure that generally agreed principles needed to ensure strong banking systems are applied worldwide.

1 Crisis and the Reform of International Financial Regulation1

Global Finance in Crisis: The politics of …, 2010

What began in the summer of 2007 as a problem in a relatively unknown segment of the US housing finance market has very quickly turned into the most severe global financial crisis since the 1930s. The impact of this crisis has escalated far beyond its point of origin, affecting countries around the world, and spilling over from the financial system into the real economy.

Reshaping the World Financial System – an Imperative of Sustainable Development

2009

This paper presents the general and specific causes which led to the actual financial and economic crisis, the principal consequences of this crisis like some other theoretical considerations regarding the cyclical normal evolution of the economies and the major disequilibrium instauration between the market’s components which generates crisis. A critical analysis of the actual financial and monetary system emphasizes its pro-cyclic character. On the following pages, the weaknesses and vulnerabilities of the present system are put into light, starting with: lack of an international reserve currency to ensure stability and development, use of complex and opaque financial instruments, making decisions taking into account the rating agencies statistics which have serious problems especially in operating actions, unsecured procedures for the financial assets’ evaluation, existence of the so called “fiscal havens”, inefficiency of “the market’s invisible hand and aspects related to the c...

Reforming the international financial system : crisis prevention and response

2000

This book was made possible through the ideas, support and contributions of many people and organisations. A particular thanks goes to the participants of the June 2000 conference, held in The Hague, from which this book emerges. Fondad very much appreciates the continuing support of the Dutch Ministry of Foreign Affairs and the co-sponsoring of this conference by the Dutch Ministry of Finance, IDRC, ECLAC, the Commonwealth Secretariat, the International Monetary Fund, and UNCTAD. A special thanks goes to Adriana Bulnes, Naomi Leefmans and Robert Ovetz who assisted me in the publishing of this book.